A “New Deal” for America

1. A “New Deal” for America A Reform-Minded Candidate Takes Charge

2. Franklin Delano Roosevelt • Energetic • Optimistic • Aggressive • “The only thing we have to fear • is fear itself.”

4. Roosevelt’s First 100 Days • 15 Proposals sent to Congress • Based on Relief, Recovery and Reform • Used “Fireside Chats” to sell programs to Americans • Opposite from Hoover’s “do nothing” approach • Major expansion of the Federal Gov’t’s power

5. Relief For Americans • Federal Emergency Relief Agency (FERA) • Gov’t Agency – gave grants to states • $500 Million to help local relief agencies • Public Works, Civil Works & Works Progress Administration • Gave states $ to create 4 million jobs in construction. • Built schools, roads & bridges • Civilian Conservation Corps • Young men built roads, parks, planted 200 Million trees to try to help prevent erosion in Dust Bowl again.

8. Homeowners Get Relief • Home Owners Loan Corp (HOLC) • Loans to people who couldn’t pay mortgages @ low interest rates • National Housing Act • Created the Federal Housing Authority • Provides low interest loans for 1st time homeowners, and to refinance schools, hospitals, nursing homes

9. Regional Relief • Agricultural Adjustment Act (AAA) – Farmers • Reduced production to end surplus • Drive prices up & leave land bare • Slaughter livestock ---it worked. • Tennessee Valley Authority (TVA) • Built Dams in TN, AL, NC & GA • Supplied 1st time cheap power to the south • Eliminated flooding & improved transport. • Created thousands of jobs

10. TVA Projects

11. Industrial Recovery • National Industrial Recovery Act (NIRA) Creates Nat’l. Recovery Agency (NRA) - Codes for fair pricing - Set prices for fair competition - Standards for work hours/banned child labor - Unions can organize & bargain collectively

12. Banking and Finance Reform • “Bank Holiday” – Restore people’s faith • Banking Relief Act • Failures caused by massive withdrawals • Banks had to prove solvency to re-open • Loans to those that could not • “Fireside Chats” to explain how banking worked – asked people to use banks again. • Glass-Steagle Banking Act – 1933 • Est. Federal Deposit Bank Insurance • Amounts up to $2,500

13. Stock Market Regulation • Addressed reasons for Stock Market Crash • Federal (Truth In) Securities Act • Complete Disclosure about Stocks • Securities & Exchange Commission – (SEC) • Stopped Insider Trading • “Rigging” of stock offerings

14. Labor Reforms • Wagner Act – 1935 (Nat’l Labor Relations Act) • Supported Collective Bargaining rights • Specified unfair labor practices as: • Threatening workers • Firing Union members • Prohibiting union organization • Establishes Nat’l Labor Relations Board to hear testimony about unfair practices. • Fair Labor Standards Act - Minimum wages; Set work week – 44 hrs.; No Child Labor

15. Something for everybody FDR’s "alphabet soup" agencies

16. Critics of the New Deal thought there was no real direction, that it would be more encouraging talk without action.

17. Critics of the New Deal Huey Long • Governor of Louisiana • “Share Our Wealth” • Take from rich – Give to Poor - Robin Hood! • Assassinated in1935

18. Critics of the New Deal Father Charles Coughlin - Energetic radio sermons denounced Roosevelt’s programs – NOT ENOUGH - He wanted guaranteed incomes and federal ownership of banks Dr. Francis Townshend -Townshend Plan – Elderly get $200/mo. - Must spend it all – Good public support! - Set the stage for the Social Security program

19. Supreme Court Stalls the Programs! • Conservative Supreme Court declared two Roosevelt programs unconstitutional b/c… • NIRA regulated national industries, but the Federal Gov’t could regulate only interstate commerce. • AAA interfered with state matters - agriculture should be regulated only by states.

20. Roosevelt Strikes Back! • Alarmed about future Court decisions • Proposes Court Reform Bill to seat 6 more judges to Supreme Court to make it more “effective”. • “Court Packing” bill widely criticized for violating ‘separation of powers’ clause. • Damaged Roosevelt in eyes of conservatives

21. http://www.aroberts.us

23. Social Reforms of 1935 • Social Security Act – Social Security Program Most important social legislation of New Deal to date Old age insurance for retirees 65 + & spouses Supplement to retirement plans • Welfare Aid to Families with Dependent Children Needy elderly, blind, handicapped • Unemployment Compensation Federal tax on employers to help pay benefits to workers who lost their jobs until they get new ones.

24. Impact of the New Deal • Expanded Government’s role and power. - Government became “regulator” of competition - “Empowers” national interest groups - labor, farmers • Investor Protection - Stock sales closely regulated – no “insider” trading - Savings Accounts Insured • Social Security, Unemployment and Welfare - Gave protection against total poverty.

25. Deficit Spending Spending more money than taken in revenues “Keynesian” Economics • Government should “spend its way out “of bad times • Put money into consumers’ hands w/jobs & credit. • Pay debt later w/ taxes and increased trade. • Deficit spending today is a way of life. What causes us to “deficit spend” today?